Which is better: A 30-year fixed-rate mortgage or go for a lower-interest 15-year one?
Typically, 15-year mortgage allows you to pay off your mortgage quicker and save a significant chunk of money on interest. However, a 30-year may be a logical choice for most people because it has more advantages. Let’s take a look at the differences:
- Payments are less with a 30-year mortgage which enables more consumers to qualify for home purchases.
- Generally, you can make additional principal payments to pay off your loan faster without penalty.
- A 15-year loan means you are committed to giving that extra money to your lender each month, whether you can really afford to at the time or not.
- The higher payments of a 15-year mortgage make little sense if they keep you from building savings or contributing to a 401(k) plan, IRA or college fund.
- The amortization schedule of 30-year fixed is back-heavy, with early-term payments big on interest and light on principal.
- A 15-year fixed is always light on interest which lowers its taxpayer benefits.
While it’s true you gain more of a tax break from a 30-year loan, it shouldn’t be the main consideration when deciding on a term. The 30-year borrower pays less in yearly taxes because they pay significantly more in interest.
So it all comes down to choice and circumstances:
- Choose the 15-year loan if you have the financial wherewithal to assume the payments. Your interest savings will be substantial and you’ll own your home faster.
- The 30-year loan offers lower payments and greater flexibility. You can always choose to pay more on your mortgage when the money is available.
As a Smith Mountain Lake homeowner, you accumulate all sorts of documentation the moment you make the offer on your home. Loan documents, inspections, insurance policies, receipts and warranties are just a few of the documents you may be collecting. Knowing where these items are can save you a lot of time and money.
Keep closing papers such as the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and title insurance policy together in one place—preferably in a safe deposit box.
For other records, a practical record-keeping system doesn’t have to be expensive. Purchase an accordion file and label each flap with a different category. Those might include:
- Insurance Policies.
- Purchase and House Data.
- Property Taxes.
- Home Maintenance and Improvements.
- Warranties, Manuals and Receipts.
- Home Inventory.
Organizing your Smith Mountain Lake home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents in the future.
Don’t be offended if an agent suggests that you paint before placing your Smith Mountain Lake home on the market. They understand “color psychology.” Since people’s reaction to color is immediate, it can have a tremendous influence on their daily choices.
You can make your home stand out from the competition, sell more quickly and at a higher price if you use color effectively. Blues will feel cool, reds and oranges feel warm. Deeper shades of color imply intimacy and serenity.
Lighter exterior colors are favored because they can make the property seem larger. For older homes, you may want to consider historical accuracy, as this could be a big selling point as well.
For the interior, consider the purpose of each room. Kitchen and dining areas painted in “food colors” such as coffee browns, celery greens and scrambled-egg yellows will make the rooms feel more natural. Hallways are a great place to bring in the exterior colors for overall harmony. Master bedrooms in medium shades of green or blue for warm selling seasons, and rouge red for cooler weather. Other bedrooms can be painted in creamy tones of green, blue or a pale shell pink. Shades of blue, green or lavender can form a relaxing atmosphere in the bathroom.
When thinking about color, common sense helps. You should match other things in your home and keep a comfortable environment as well.